Tesco has begun consultations on what is likely to lead to up to 4,500 workers being made redundant.
The company is reducing headcount at 153 of its city centre Tesco Metro stores saying changing shopping habits, and the need to store less stock in back rooms, mean fewer workers are needed. Sources tell Business Live that the process has begun.
The supermarket chain said shoppers are now using the city centre Metro concept for convenience buying rather than picking up a large weekly shop.
Therefore it is looking to reduce staffing after finding simpler ways to stack shelves, a process which means there is less need for stock to be kept in back rooms.
It is also simplifying its management structure and introducing flexible working in the stores.
A Tesco spokesman said: “We are still undergoing a consultation with colleagues across the UK affected by the changes to our Metro stores.
“We’re not yet in a position to share details of where the impact will be felt and to what extent until this process has been completed.”
Tesco announced the redundancies in early August 2019, as its stores face fierce competition from budget supermarkets Aldi and Lidl.
In a statement on its website Tesco said job cuts were part of an effort to “simplify and reduce processes and administrative tasks” across its Metro stores.
“The changes in our Metro stores will be focused on better tailoring them to how our customers shop,” the statement said.
“The Metro format was originally designed for larger, weekly shops, but today nearly 70% of customers use them as convenience stores, buying food for that day.”
Tesco is also looking to restrict opening hours in 134 of its 1,750 smaller neighbourhood Tesco Express stores, where footfall is lower, the company said.
Tesco is the UK’s largest retailer, and has more than 300,000 employees and in excess of 3,400 stores.
In early 2019 it said it would look to cut 9,000 jobs, although hoped to redeploy up to half of these workers into other customer service roles.
BusinessLive understands that among the stores affected are the one in Plymouth city centre, where as many as 30 jobs are under threat.
Fishmongers, butchers and bakers and general counter staff were expected to be most at risk as the company aims to hack £1.5billion from its cost base.
However, this comes as Tesco posted healthy profits early in 2019. For the year ending February 23, the grocer reported a 34% rise in full-year operating profit, with the £2.21billion sum ahead of expectations. Group sales rose 11.5% to £56.9billion.
